Commissioner of Income Tax v Menon [1985] KECA 84 (KLR)
The bottom line
#Kenya's Court of Appeal confirmed that High Court tax decisions can be appealed further, because such orders are treated as decrees under the law.
What this practically means
#Executive summary
#Key legal issues
#Whether a right of appeal to the Court of Appeal exists in income tax appeals from the High Court
By majority (Hancox and Madan JJA) the Court of Appeal has jurisdiction to hear the appeal; the preliminary objection is dismissed.
Hancox JA held the High Court order has statutory effect as a decree under section 87(3) and is appealable under section 66 of the Civil Procedure Act; Madan JA held the appeal lies under section 72(1) of the Civil Procedure Act and is supported by section 93(2) of the Income Tax Act. Platt Ag JA dissented, finding no statutory provision for a third appeal. The majority result is that the objection fails.
Character of the order of the High Court in an income tax appeal
The order has effect as a decree in the full sense, not merely for enforcement of the tax.
Section 87(3) of the Income Tax Act statutorily deems the High Court's order on an appeal to be a decree. Hancox JA rejected the taxpayer's narrow reading confining the deeming provision to collection and enforcement, holding the decree is appealable as of right, and that Parliament cannot have intended by the 1974 Act silently to remove a right of appeal previously enjoyed.
Status of the local committee and counting of appeals
The local committee is a quasi-judicial appellate body, not a court; the appeal to the High Court is therefore the first appeal and the appeal to the Court of Appeal is not a third appeal from a court (Madan JA), or alternatively is a third appeal expressly provided for under section 72(1).
Madan JA rejected the characterisation of the local committee process as a mere reference to an administrative tribunal: it is set up by statute, its powers and procedure are prescribed by rules, and it is bound by natural justice. The word 'second appeal' in the marginal note to section 72(1) of the Civil Procedure Act is not a numerical limitation but means a further appeal from the High Court.
Permissibility of consulting prior legislation to construe the Income Tax Act (cap 470)
It is permissible to examine the historical setting and predecessor statutes to ascertain whether a right of appeal survived the 1974 legislation.
The Attorney-General urged the court to confine itself to the four corners of the current Act, invoking Cape Brandy Syndicate. The court accepted that in a taxing Act one looks only at what is clearly said, but agreed with counsel that in case of uncertainty a court may look at the historical setting of an Act and the earlier East African legislation to see how the previous right of appeal was conferred.
Legal principles established
#- There is no right of appeal apart from statute; a right of appeal must be expressly granted by statutory authority and cannot arise by implication or inference.
- Under section 87(3) of the Income Tax Act an order of the High Court on an appeal from the local committee has effect as a decree and is appealable as of right to the Court of Appeal under the Civil Procedure Act.
- The finality of an assessment under section 88 of the Income Tax Act is fiscal finality for collection purposes and does not bar a further appeal; finality of assessment is not to be equated with the finality of an appeal.
- A right of appeal need not be contained in the substantive Act itself; it may exist in general legislation such as the Civil Procedure Act (Madan JA, concurring).
Court orders
#- 1.Preliminary objection of the taxpayer dismissing the appeal as incompetent is dismissed with costs; the appeal to proceed to hearing
- On appeal from
- High Court of Kenya
- Not stated in the judgment
- Jurisdiction invoked
- Section 68 of the Constitution (as then in force) read with section 72(1)/section 66 of the Civil Procedure Act (cap 21) and sections 87(3) and 93(2) of the Income Tax Act (cap 470)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Bloggers Association of Kenya (BAKE) v Attorney General & 6 others (Civil Appeal 197 of 2020) [2026] KECA 430 (KLR)[2026] KECA 430 (KLR)6 Mar 2026
Cite this brief
#Cite this brief
Caselaw, "Commissioner of Income Tax v Menon [1985] KECA 84 (KLR)", Case Analysis (1985). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1985/84/eng@1985-04-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.